Keith Simmons, chairman, Tennessee Education Lottery Corp.

Tennessee Lottery's CEO, Rebecca Hargrove, works at a TV commercial shoot at a studio in Nashville in January 2013. / Jae S. Lee / File / The Tennessean

More

ADVERTISEMENT

The Tennessee Lottery plans to relocate its headquarters from Nashville’s MetroCenter business park to nearly 56,000 square feet of leased space at the One Century Place office building near Nashville International Airport.

The quasi-public entity’s move next spring would increase the vacancy rate in a MetroCenter office market already bracing for a hit from the state’s reshuffling of its office space.

One Century Place was chosen because an analysis of the lottery’s options found the airport-area building offered the best overall value, lottery officials said.

“It’s just a more efficient layout, so we can take less space,” said Keith Simmons, the lottery’s board chairman, citing about 9,100 square feet less space under the new lease.

The lottery currently occupies 65,000 square feet of space in MetroCenter’s Plaza Tower at 200 Athens Way under its 10-year lease, which expires in February 2014. About 110 employees will move to One Century Place, where the lottery will continue to sublet space to its drawing-style and instant ticket vendors, said spokeswoman Kym Gerlock.

With the lottery’s new lease, plus another tenant signed earlier this year, One Century Place is now nearly fully leased. Tenants include insurance broker Willis, the Tennessee Valley Authority and cellphone insurer Asurion. The building has 538,788 square feet of space and includes a conference center.

The asking lease rate at One Century Place is $22.50 a square foot versus $18 a square foot at Plaza Tower. While the average rent at One Century Place was $35,000 a year more, overall differences between moving or staying put at MetroCenter were small, so the decision became a qualitative choice between the alternatives, according to an analysis provided to the lottery.

“This new arrangement will boost efficiency in utilization of our office space, including overall operations and mechanical, plumbing and electrical systems,” Gerlock said, adding an expiring lease and a desire to find the best space for the lottery’s needs led to the move.

Ample parking and proximity to Interstate 40 and Briley Parkway makes the Century Boulevard site convenient and accessible to clients and employees, she said.

Getahn Ward covers growth and development. He can be reached at 615-726-5968 or at gward@tennessean.com. Follow him on Twitter: @Getahn.